Question 1

Which statement is the most accurate?

Accepted Answer

A) Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy. 
B) Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions. 
C) Because of underlying trust,business flows smoothly in virtually all communist societies. 
D) Ordering a pencil for work is equally complicated in a capitalist and a communist business. 
A) Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy. 
B) Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions. 
C) Because of underlying trust,business flows smoothly in virtually all communist societies. 
D) Ordering a pencil for work is equally complicated in a capitalist and a communist business.

Question 2

In the 1980s,___________________ strictly adhered to the communist credo,"From each according to his ability,to each according to his needs".

Accepted Answer

A) China,but not the Soviet Union 
B) The Soviet Union,but not China 
C) Both China and the Soviet Union 
D) Neither China nor the Soviet Union 
A) China,but not the Soviet Union 
B) The Soviet Union,but not China 
C) Both China and the Soviet Union 
D) Neither China nor the Soviet Union

Question 3

In the former Soviet Union distributing scarce consumer goods was accomplished by

Accepted Answer

A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true. 
A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true.

Question 4

Lack of the provision of public goods is considered a ______________ _____________.

Accepted Answer

The answer of Lack of the provision of public goods...

Question 5

Karl Marx and Friedrich Engels believed that the ideal communist society would come about when

Accepted Answer

A) the state withered away. 
B) the state gained control of the economy's means of production. 
C) there was private ownership of the means of production. 
D) all large corporations remained in private hands,but were regulated by the government. 
A) the state withered away. 
B) the state gained control of the economy's means of production. 
C) there was private ownership of the means of production. 
D) all large corporations remained in private hands,but were regulated by the government.

Question 6

Under private enterprise,production is guided by ____________________________.

Accepted Answer

The answer of Under private enterprise,production is guided by ____________________________....

Question 7

In reality,all economic systems are

Accepted Answer

A) mixed. 
B) command. 
C) capitalistiC. 
D) democratic. 
E) socialistic. 
A) mixed. 
B) command. 
C) capitalistiC. 
D) democratic. 
E) socialistic.

Question 8

When the production or consumption of some good or service inflicts costs on a third party without compensation it is called a(n)__________ _________.

Accepted Answer

The answer of When the production or consumption of some...

Question 9

Adam Smith believed that the best way to promote the public interest was to

Accepted Answer

A) have the government produce most goods and services. 
B) let people pursue their own selfish interests. 
C) wait for individuals to set out to promote the public interest. 
D) get rid of the price mechanism. 
A) have the government produce most goods and services. 
B) let people pursue their own selfish interests. 
C) wait for individuals to set out to promote the public interest. 
D) get rid of the price mechanism.

Question 10

Having the government issue permits that allow polluting

Accepted Answer

A) would increase the levels of pollution. 
B) is a measure used all over the world,but not in the United States. 
C) would allow companies that are better at curbing their pollution to sell the permits to companies that are not as good at curbing their pollution. 
D) has been very ineffective in curbing pollution. 
A) would increase the levels of pollution. 
B) is a measure used all over the world,but not in the United States. 
C) would allow companies that are better at curbing their pollution to sell the permits to companies that are not as good at curbing their pollution. 
D) has been very ineffective in curbing pollution.

Question 11

There has been a marked reduction in air pollution since ________________.

Accepted Answer

The answer of There has been a marked reduction in...

Question 12

"From each according to his ability;to each according to his needs" is from

Accepted Answer

A) The Communist Manifesto. 
B) The Capitalist Manifesto. 
C) The Socialist Manifesto. 
D) The Fascist Manifesto. 
A) The Communist Manifesto. 
B) The Capitalist Manifesto. 
C) The Socialist Manifesto. 
D) The Fascist Manifesto.

Question 13

Statement I.Pollution is an example of market failure.
Statement II.Externalities can be costs or benefits.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 14

Which statement is the most accurate?

Accepted Answer

A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978,Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative. 
A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978,Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative.

Question 15

Statement I.The circular flow model traces the flow of money,resources,and goods and services through the economy.
Statement II.Most household income is spent on investment or capital goods.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 16

The government performs each of the following economic functions except

Accepted Answer

A) collecting taxes. 
B) spending. 
C) issuing regulations. 
D) operating the price mechanism. 
A) collecting taxes. 
B) spending. 
C) issuing regulations. 
D) operating the price mechanism.

Question 17

To have competition as economists define it,

Accepted Answer

A) you need many firms in an industry,with no one firm having any influence over price. 
B) you need a couple of firms in the industry,with each having significant influence over the price. 
C) you need many firms in an industry,and it doesn't matter if one firm has influence over price. 
D) All of these statements are true. 
A) you need many firms in an industry,with no one firm having any influence over price. 
B) you need a couple of firms in the industry,with each having significant influence over the price. 
C) you need many firms in an industry,and it doesn't matter if one firm has influence over price. 
D) All of these statements are true.

Question 18

Statement I.Under our economic system the most important decisions are made in the marketplace.
Statement II.Most economists would agree that the price system leads to a very efficient allocation of resources.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 19

China embarked on a large-scale privatization since ___________.

Accepted Answer

The answer of China embarked on a large-scale privatization since...

Question 20

Which does not fit with the others?

Accepted Answer

A) "The invisible hand" 
B) Government regulations 
C) A government "five-year plan" 
D) Government planning 
A) "The invisible hand" 
B) Government regulations 
C) A government "five-year plan" 
D) Government planning

Exam 3: The Mixed Economy

Which statement is the most accurate?

In the 1980s,___________________ strictly adhered to the communist credo,"From each according to his ability,to each according to his needs".

In the former Soviet Union distributing scarce consumer goods was accomplished by

Lack of the provision of public goods is considered a ______________ _____________.

Karl Marx and Friedrich Engels believed that the ideal communist society would come about when

Under private enterprise,production is guided by ____________________________.

In reality,all economic systems are

When the production or consumption of some good or service inflicts costs on a third party without compensation it is called a(n)__________ _________.

Adam Smith believed that the best way to promote the public interest was to

Having the government issue permits that allow polluting

There has been a marked reduction in air pollution since ________________.

"From each according to his ability;to each according to his needs" is from

Statement I.Pollution is an example of market failure. Statement II.Externalities can be costs or benefits.

Which statement is the most accurate?

Statement I.The circular flow model traces the flow of money,resources,and goods and services through the economy. Statement II.Most household income is spent on investment or capital goods.

The government performs each of the following economic functions except

To have competition as economists define it,

Statement I.Under our economic system the most important decisions are made in the marketplace. Statement II.Most economists would agree that the price system leads to a very efficient allocation of resources.

China embarked on a large-scale privatization since ___________.

Which does not fit with the others?

A Brief Economic History of the United States

Resource Utilization

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

Lack of the provision of public goods is considered a __ _.

When the production or consumption of some good or service inflicts costs on a third party without compensation it is called a(n)__ _.